Re Contract

Carillion PLC
14 May 2003

Carillion chosen for £130 million A249 PFI contract
by Highways Agency

Business and Construction Services company Carillion has been appointed as
provisional preferred bidder for a Design Build, Finance and Operate (DBFO)
contract for a major section of the A249 trunk road in Kent, under a 30-year
concession worth around £130 million.

Besides management of 17.5 kilometres of the trunk road providing access from
the M2 to Sheerness Port, the project also involves five kilometres of new build
including a 1.25 kilometre long viaduct over the River Swale which will provide
a much-needed fixed access to the Isle of Sheppey, replacing the existing
lifting bridge.

The contract will also include the provision of annual routine and winter
maintenance for the 30 year concession and required major maintenance over the
lifetime of the contract.

Payment will be based on Carillion's ability to manage its operations, and their
effects on traffic flows, efficiently and effectively. This includes maximising
lane availability to keep traffic flowing during maintenance or improvement
works.   There is also a safety bonus payment if the number and severity of
accidents are reduced.

John McDonough, Chief Executive of Carillion said: 'We are delighted to be
working alongside the Highways Agency and look forward to providing road users
with a cost effective and innovative service.

'Transport is one of our key growth sectors and this contract follows other
recent successes in 2003, including two major contracts for the Highways Agency
- the Area 12 highway Managing Agent Contractor (MAC) maintenance contract, with
a total worth of up to £230 million - a £65 million contract to upgrade the nine
kilometre stretch of the A74 to motorway and a £160 million maintenance contract
for Surrey County Council.'

For further information contact

John Denning, Director Group Corporate Affairs                01902 316426
Paula Manning or John Davies, Corporate Communications        01902 316444


                      This information is provided by RNS
            The company news service from the London Stock Exchange